ValuCom Electronics manufactures five different models of te

Valu-Com Electronics manufactures five different models of telecommunications interface cards for PCs and laptops. As summarized in the following table, each of these devices requires differing amounts of printed circuit board, resistors, memory chips, and assembly.

The unit wholesale price and manufacturing cost for each model are as follows.

In its next production period, Valu-Com has 80,000 square inches of PC board, 100,000 resistors, 30,000 memory chips, and 5,000 hours of assembly time available. The company can sell all the product it can manufacture, but the marketing department wants to be sure the company produces at least 500 units of each product and at least twice as many FastLink cards as HyperLink cards while maximizing profit.

a. Formulate an LP model for this problem.

c. What is the optimal solution?

d. Could Valu-Com make more money if it schedules assembly workers to work overtime?

Solution

a)

Let x1=number of HyperLink cards to make

x2=number of FastLink cards to make

x3=number of Speed Link cards to make

x4=number of MicroLink cards to make

x5=number of EtherLink cards to make

Objective function is Max Z=53x1+48x2+33x3+32x4+38x5

STC

20x1+ 15x2+ 10x3+ 8x4+ 5x5 < = 80,000

28x1+ 24x2+ 18x3+ 12x4+ 16x5 <= 100,000

8x1+ 8x2+ 4x3+ 4x4+ 6x5 <= 30,000

75x1+ .6x2+ .5x3+ .65x4+ x5<= 5,000

x1>=500

x2>=500

x3>=500

x4>=500

x5>=500

-2x1+x2>=0

where x1, x2, x3, x4, x5 >=0

b)

Use Excel to find the Optimum solution.

x1=x2=1500 x3=x4=x5=750

69,750<80,000

112,500>100,000 not feasible

34,500>30,000 not feasible

3,637.5<5,000

all x’s>500

1,500<2(1500) not feasible

This solution is not feasible and therefore can not be optimal.

c) Produce 500 HyperLink 1000 FastLink

1500SpeedLink 2250

MicroLink 500

EtherLink Use 3687.5

assembly hours Yield $215,000 in profit